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Scottish independence vote is vetoed

Alex Salmond's flagship policy of holding a referendum on Scottish independence next year was sunk yesterday after the Liberal Democrats vetoed the move.

Sources close to the first minister admitted there was almost no chance of his minority government securing parliamentary support to put the issue to a public vote ahead of the next Holyrood election in 2011.

At a special conference in Dunfermline yesterday, the Lib Dems voted to rule out support for a referendum pencilled in for St Andrew's day next year, claiming it would dilute efforts by politicians to pull Scotland out of recession.

However, the Lib Dems said they might support a referendum after the next Scottish parliament election, which could lead to it being held in 2012.

Salmond is now preparing to try to salvage his plan by offering the Lib Dems a place in a coalition government in 2011, if the SNP again emerges